away. russian officials deny that, saying only three shells exploded instead of 425 shells. >> well, they thought that chernobyl wasn't a big deal but it was a big deal. melissa: that is all the "money" that we have you today. "the willis report" is on. speak to a new report shows how much obamacare will cost just iiplement the new rules and regulation. and someone is not telling the truth about mitt romney's tax plan. president obama and harvey rosen the professor is here tonight to set the record and in the president straight. welcome to "the willis report."

gerri: hello, everybody, tonight, we began with the with the supreme court where nations justices take on one of the hottest issues out there. abigail fisher and university of texas for rejecting her for being white. joining me now, the former federal prosecutor and kelly stand on, a constitutional law attorney. welcome to you both. fred, i'm going to start with you. you might think that the court should rule in favor of the university of texas, which is fighting to keep these racial preferences. why is that? >> well, i'm not advocating one decision or another. if you look at supreme court questioning going back to 2000 and three race can be a factor in determining admission. in this case, i think for the

university of texas, the majority of the students at the university of texas at intercampus if they are in the top 10% of their graduating class because of the way that the schools are set up. that leads to diversity. gerri: okay, all right, maybe. let's talk to kelly. you just said that justice should be blind and there may be more effective ways of getting some balance and student body than having the government come in and order that it do so. how is that? >> well, you know there are scenes that are considered socioeconomic. therefore, they are in different schools and university of texas has advocated that this is to help middle and upper class minority students. well, that is pitting minority against minority. how is that helping the disadvantaged people in this country. the people that don't have access. if there was assisting for people that don't have great education and to get them into

better colleges, that is different. in this case, they are saying that you can equal grades or lesser grades. if you are a minority, we are going to lock someone like abigail fisher out. gerri: abigail fisher, her 2008 application was rejected. she was in the top 12% for graduating of the graduating class from a recognized for academic excellence. she was the orchestra president and a habitat for humanity volunteer. why shouldn't she be in the school lobby? >> okay, i agree with kelly. justice should be blind, that is why the lady that holds this is blindfolded. but to aaswer your question, she's not in there because she wasn't in the top 10% of her class. the majority of university of texas students, in order to be able to do that to me have to meet that race neutral criteria. of criteria, where people get considered for those positions,

race is one of a number of factors. the question for the supreme court is, under that scenario, those circumstances is it legal -- and they very well could be. gerri: what i think is interesting about this is that the law that set these rules into place, they basically said there will come a point when you don't need affirmative action and universitt of texas. the question to come is when did we get there? a new survey of georgetown university students shows that some folks think that we may be passé. 57% say that race should not be an admission factor. 15% say they have been hurt by race or gender. a lot of people out there, particularly young people say this is old school and we don't need this anymore. what you say? >> well, the thing about it is affirmative action does have an a good intent in mind. the problem is it ends up disadvantaging other students.

the idea that young kids aren't saying it is because they weren't brought up in an equally charged raises environment and i know a lot of people are still going to say it is racism that still exists, and i agree. the difference is kids are being let in a school based on academics. outside achievements. it should not be skin skiing holidays. you should legitimately have equal criteria and any minority versus the caucasian, you should have the same admission criteria. otherwise, you are just promoting people don't have to work as hard because they are going to get a leg up. >> she is right, that's what you don't want to promote. but ultimately what i don't like is you have to admit people, you have to set quotas and take quotas away. i can't believe i'm agreeing with justice sotomayor, but isn't it the responsibility of those of universities to decide whether or not they need to diversity in the schools, the

51% 51.1% at what point do we meet the racial quota? is this not good enough? >> that was one of the questions that the judges were answering. justice roberts said, don't you have enough. gerri: when you're out there counting heads, making sure you have enough people in every category, that is all you're paying attention to and that is your focus and nexus. >> i say that diversity is very

important. we keep talking about the university of michigan and the decision. i went to the university of michigan for undergrad. that population that you just read that is pretty common in comparable with our society. the difference our society. the difference is if you are flooding it by unfelt by students, and people like fisher are being overlooked in the worst that bbcause they happen to be white, it's not fair. >> this may come as a surprise to you, i'm a fat, middle-aged white guy. i see it. i get it. i understand the frustration. i also can look into the arguments as far as why they want to do this. gerri: take a look at this, fred. affirmative action plan. [laughter] gerri: this case could have legs, which is what i think is interesting. what they decipher texas could apply to other states. affirmative action could apply in nebraska, michigan, florida, -- this is an issue all over the country. how will this case play out in

other parts of the country? >> well, that's an interesting question. if the supreme court rules that race can't be a factor, then they will with the stroke of a pen basically abolish all of these kind of systems in these race conscious programs that the universities have put in place. that is a huge debt. i'll be surprised if they did that. >> she was one of the policymakers for this type of policies and she -- justice sotomayor didn't say that her that she give the illusion that she could be biased. she has removed herself. i think she should have stepped down from obamacare as i've said

many times on the show. the reality of the situation is that kennedy is going to be the swing vote. i think there is going to be some restrictions or some sort of mandates in place to be very careful. >> it will be interesting to see what happens, but we'll have to wait for a while. frederick and kelly, thank you both for coming on the show. >> if you are fired up about this or any other issues, drop me an e-mail at gerri@foxbussiness.com. >> coming up on "the willis report", more evidence obamacare is doing more harm than good for our economy. gerri breaks down how the president's new health plan will hurt your bottom line acts. and obama's campaign painted ronnie's tack when his tax plan black. we will ask professor harvey rosen later.

and our financial expert will be with us. next on "the willis report."

the

gerri: well, there is an old saying that says when you're in a hole, stop digging. that is what is going on when it comes to the economy and the president obama's policy. our economy is like a car on winter morning, barely turning over. obamacare, health care law is a good case in point. a new study shows obamacare will cost a total of $26 billion to implement. just to implement the blizzards and blizzards of new regulations and paperwork required. again, i'm not talking about the increased costs or higher cost

doctors. we are just looking at putting law into effect. here's the detail. the private sector will bear the biggest burden of those costs, $20.4 billion over the lifetime. states will have to pony up 7.2 billion. keep in mind, this is a law a lot of states don't even want to implement. five states will face a billion dollars more in cost. illinois, florida, texas, and california. you see them here. most of those states are already having a lot of financial problem. florida and texas have thought this law tooth and nail. looking deeper, here is slowly will what we will get that money. the single most expensive rule is the one requiring companies to have common standards for reporting to the government. that single rule will cost companies $6 billion in i.t. and software costs. it will cost the private sector $3.5 billion. on and on and on. one that i didn't even know

existed in obamacare, a requirement for menu labeling by grocery stores is another 70700 and $50 billion. this gentleman who wrote this is that his estimate of costs may be on the loci. others say the cost may be as high as $5 billion. that is the problem. the conversation about how to reform health care, remember? it started with how to bring down the cost of health care in this country. at the time i sit obamacare would no doubt raise costs and not lower them. now, we find that absolutely true. it's not just a price tag that is the problem. now we find just the specter of obamacare is causing companies to delay or slow hiring plans. here's the ceo could see katy restaurants. >> you have a choice from you can hire another 40 week employee and incur the costs of

o'dwyer on 10 obamacare, or you could create jobs and do things that businesses like to do. gerri: there you have it. a program that is costing jobs is sure to cost a lot of jobs. i hope we get rid of obamacare. coming up next from our political panel gives us their take on what we can expect from joe biden and expect from joe biden and paul ryan won expect from joe biden and paul rhineland face-off tomorrow night. stay with us ♪

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into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. i've been a superintendent for 30 some years at many different park svice units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retirired from doing this one thing that i loved. now, i'm going to be ableo have the time to explore something different. it's like another chapter. gerri: casino mogul steve wynn calling president obama's love on job creation. coming up

next

gerri: is the president out of luck? is he a brisk four american businesses? let's ask our experts. great to have you both here. i want to play this sound bite from steve wynn to give you a sense of what he said. >> i'm a job creator, guys like me are job creators and we don't like having a bull's-eye painted on our back. i can't stand the idea of being demagogue. gerri: strong words, of course, and when is a mobile of wynn resorts. how we respond that? is he one of many tos that deals put off by the president?

>> he was a former obama supporter, and he has fallen off the train with good reason. uncertainty has to be the number one reasons. the president spent an entire year working on that health care law. after that, you had the offering. businesses are sitting and waiting to have washington tell them what their costs are going to be in relation to those two laws. and i think he is right. the obama administration is sitting on the peoples backed. gerri: jump in, i hear this from so many people. i don't know what i can do, i don't know if i can higher, everything is uncertain. do you think that is what is keeping a lid on this economic

growth in this country? >> i think the economic uncertainty -- the uncertainty of the obama regulatory regime. it is also the threat of tax hikes. 93% of jobs in the small-business sector are employed by family businesses that are making more than $250,000 per year. all those tax hikes that obama is talking about, on average people, are we going to be hit by small businesses. you have all of these people that are hiring all these people, and it they have costs that are going up in terms of obamacare, they have to cut back on something. it's probably going to be on jobs. that is why earns young said obama tax increases are real. gerri: the president throwing up his hands and say that you cannot change washington from the inside. chris christie, governor from

new jersey have some strong words on the campaign trail about that. >> i feel badly for the president. maybe he is still a little tired from last wednesday night. [cheers] [applause] maybe he is disoriented and what he says. but let me remind you. i want to help the president. he loves me and i'm sure he's out there listeng. [laughter] mr. president, you have this inside at 1600 pennsylvania avenue for the last four years. if you can't change and affect change from inside the white house, let's give you the way to get back to chicago that you deserve. >> we are going to find out about this hopefully during the presidential debate and why washington doesn't work. joe biden was rocco biden in 10 obama 's

i hope that they will bring it up, exactly why barack obama was not able to do a deal with republicans. gerri: at it's a big question. jonathan, let's just jump to thursday's debate between the vice presidential candidates joe biden and paul ryan. what should we be expecting and what should we be watching for? >> the obama people want to lower the expectations and vice versa on the other side. he will say ridiculous things. but it is usually when he gets on the stump committee starts rambling from he starts asking rhetorical questions. but one has two minutes to give his answer, he actually is very good. he connects with people. >> i think that is exactly what is going on here. getting the one other thing that i want both of you to respond to, and that is jack welch. defending his comments when he questioned the veracity of the jobs numbers.

lots of questions about their particular last friday. here is what jack welch said. the data collection system is biased and overstated. i'm not sorry for the heated debates that pursuit. i am not the first to question government numbers and hopefully i will not be the last. what did you make of that whole brouhaha. >> i am not inclined to believe that the numbers were that kind of thing. i think that it is very difficult to do. the bigger issue is whether it was a blip or two, a statistical blip, or whether this is going to be a trend. we are probably not going to know that until after the election. gerri: at least one more data point to come. jonathan, what did you make of getting fired for him. the man ran ge. >> he diverted the attention away from the substance of the numbers because he went back to

the integrity of the numbers. 114,000 new jobs is nothing to celebrate. we need 150,000 jobs to absorb all the new college graduates. i was surprised that he diverted from the fact that it was not good job supported all. gerri: that rummy is disturbed by that, a new low in the political season. >> it is very sleazy thing to do, to leave unturned use the word liar. especially in a presidential debate. what you are doing is not to engage them into debate, but to debauch the debate. you are trying to eliminate them and move them out of politics altogether. i think the obama campaign is showing that they don't want to compete with mitt romney, they want to roughhouse mitt romney. that is not going to appeal to many voters right now. it's the one it will be interesting to see how voters respond. we are going to have to leave it there. thank you both for having come on the show tonight.

it's a pleasure. be sure to tune into fox business from night for complete coverage of the vice presidential debate. it will be hosted by our very own neil cavuto starting at 8:00 p.m. eastern. next, he burst on fox business interview with anaconda smiths who says the president is misrepresenting the facts. and the focus on big bird is a big problem for mitt romney. we will explain next

♪ gerri: desperate after a stunning defeat in the first debate and with mitt romney soaring in the polls, president obama is hammering the message to voters that mitt romney wants to raise your taxes. obama likes to cite a study by princeton economist harvey

rosen. rosen says the company -- the president misrepresented. what is the truth? professor harvey rosen joins us to explain. thank you for being with us. appreciate your time. the president is saying that you say romney's tax plan we will end up raising taxes on middle-class. is that what you said? >> that's absolutely not what i said. what i said is that he can cut rates on the very highest income taxpayers and get rid of loopholes and tax preferences, he can make up enough money for those people at the high end to not end up paying more, don't end up paying less. if they don't have to pay less than the people below them don't have to pay more. that's what i showed. mathematically possible for the romney plan to work. i did not show or claim that

middle-class people would have to pay more. there is nothing in my paper that states that. nothing in my paper that implies that, nothing in the numbers that would support that conclusion. gerri: professor, the administration that is saying 180 degrees the opposite of what you said. >> exactly. gerri: completely misinterpreting what you said. tell me about your analysis of mitt romney's plan. what would be the ultimate effect of raising -- lowering tax rates by 20% on everybody. take away some of these deductions. drawing a conclusion about how much money you could raise with the broader effect on the economy. do we not have enough details to back. >> a qualitative way, the tax system of the broader base. most economists would agree to that. the big question is how much more, and the honest thing to say is no one is sure.

my view is that even a moderate amount of growth would be enough to make a difference. ten years from now gdp would be 3 percent higher than it would have been otherwise. that is not really dramatic, but it is sure enough money to matter. >> more dramatic than we have right now. do you believe that what has happened to this economy is the effect of the administration policy? >> this so much going on at the same time. the aftermath of the financial crisis. we have households and businesses that borrow too much. i think that the uncertainty associated with the administration's policies is not helping. gerri: that is at least would business owners small and large tell us every single day here.

criticized by people for not being more specific about the deductions he was to change. he recently said community will camp out. appropriate because you have watch these tax debates over and over again. is it appropriate for the candid it's a safe and not going to decide every last single detail on this tax plan. i'm going to leave it up to congress ever going to negotiate it out together. >> entirely appropriate. makes sense. we are going to have a negotiation. by the way president obama is doing the same thing with his corporate reform. he says he wants to lower rates. he says he wants to get rid of. i think it's only appropriate. if he really cares of making it happen that is the right strategy.

gerri: i hope you'll come on and be on set with us. a fascinating interview. appreciate your time. >> it was great. gerri: after a stunningly bad performance president obama has a specific strategy for his comeback. >> one man has the guts to speak his name. >> big bird. >> big bird. >> it's become a big bird. >> mitt romney does it is not was treated sesame street. taking and our enemies. >> these are tough times with real serious issues. you have to scratch your head

when the presence as the last week talking of a saving big bird. gerri: we are scratching our heads. the president to make all the jokes we want. sesame workshop and its subsidiaries get about $8 million a year. this is on top of corporate donations and distribution fees. each your sesame were just as 134 million in operating cost. already on the books. $289 million in assets. now broken down about $29 million in cash and the like. another 129 of 21 million in investments. rest assured, mr. president, even if mitt romney has his way and the ridiculous $8 billion is spent on pbs goes away, big bird will not be out of the nest or even out of a job. if you keep spending taxpayer dollars like this hopefully you will be the one of a job. that's what i think. here's our question tonight. no tax dollars should be going to big bird. do you agree? but on the right inside of the

screen in the share the results of the end of tonight's show. still to come, warning about a flaw that may be in your retirement. bluebird at your local walmart and it could be costing you tons of money in fees. why then the debit card the nation's biggest retailer as banks across the country shaking in their boots.

it. gerri: more pain for spain, s&p downgrading the credit rating two notches. that is one notch above junk status. the credit rating agency said its lack of economic growth and the government's ability to handle the fiscal crisis. more cuts could be on the way of political support wanes which could happen. consent tonight over what some are calling a growing threat to the banking industry, and i'm talking about prepaid debit cards. american express and walmart launched their own card that they are calling the bluebird. my next guest is one of the cards critics. berger joins me now, the editor in chief of american banker. it's always great to have you here. how are these cards a threat to banks? >> there are a threat to banks because amex and walmart with 4,000 retail stores, trying to compete and get away a lot of

the checking account customers. if this card works as promised you will be a will to direct deposit, send money to pay bills , send money to other people. you will be a will to take a picture of a check and deposited on a prepaid accounts. so it has a lot of features that are going to try to compete with a standard bank account. gerri: we have complained about these forever. and generally we complain about the celebrity cards. >> they deserve it. gerri: thank you for that. >> us look at the fees associated. gerri: it looks pretty good compared to a lot of them. there is no monthly fee. $5.95 monthly fee. the walmart money car has a $3 fee. of course there are others. by the way, we are going to put this on our website so you can drill down if this is our topic. but why should viewers at home the concerned. and just going to the idea of who might get these cards, who

buys these prepaid cards. >> the business interestingly started out targeted at the affluent young kids whose parents wanted to give them something, but it actually, on the people who could not get paid to counter did not want to, and it had this lowbrow image. gerri: also because people were so mad at banks that they wanted another option. it wanted to get the heck away from these folks who are raising fees at every turn. >> and now what you are seeing is no class people are kind of angry at their banks are they just don't want to pay the fees. for a checking account it ranges anywhere from $60 to $150 per year in service fees. overdraft fees and all these other things. with a prepaid card you won't have that. the fees to the user are actually virtually nothing, as you said. >> unless you get a celebrity card. gerri: let's look at all the money flowing into this industry. $82 billion. they are voting with their feet.

any downside to this? consumers who might want to take out a mortgage on the might want to get a college loan for their kids. >> you don't have a relationship with the bank. you go in and wanted to cover loan. obviously you don't have that same history. it will not help your press corps like it will with a bank account if he had a checking account. obviously not overdrawing it. so there is that downside. of course it is not money that you're saving. money that you're putting out a card so that you can spend it. >> there is really no benefit to it. one of the facts that really took my breath away is that this business is growing twice as fast as credit and debit cards. it seems to me at some point bankers are going to have to wake up and realize, you need regular retail consumers. is our business so expensive, so lacking in profit that they are eager to walk away?

>> unfortunately it costs about 250-$350 a year to keep checking accounts open. ellis you do other forms of business where you have a big balance they aren't going to come out and say, but for these low balance customers there aren't too sad to see them go away. the banks are also coming in with their own prepaid cards. so they see the writing on the wall. gerri: we will continue to report on the feast. that is for sure. one of the smartest people on this topic. thank you for coming out tonight. it morning for car owners. your air bags in your car may be counterfeit and therefore dangerous. the national highway traffic safety administration says, if you have replaced airbags in the last three years you could be at risk. officials say these counterfeit packs don't inflate properly if they in flight at all. in one case the counterfeit bags shot out shards of plastic on impact. you can check to see if you could be a victim by going to the government website.

can if you bought a new vehicle this year we could probably just the color. now with the annual rankings of the most popular car colors of 2012. number five, candy apple red. i love recommend it turns out color preferences vary by geography. more red vehicles in north america. number four, great. boring. grew in popularity during a recession as more buyers wanted the car color that would not come out of style. black. 19 percent of cars on the road, but it is the most popular color in europe. but the most popular color for the century before being overtaken by the year's number one car color. its white.

making what the new black. still to come, my "2 cents more" . and think you know what is in your portfolio? we will tell you about a flaw that could be costing you money. don't go away.

gerri: your company's retirement plan, you may not be maximizing your return on investment. all told you what to do about it next.

gerri: in focus tonight, a possible flaw with your retirement. i'm talking about target date mutual funds. you may own these. chances are you are invested. your funds designed to change asset allocation automatically each and every year you reach retirement. these kinds of funds don't produce a big of a nest egg is to make think. and investments strategist and editor of game changes. i want to read a statement. there were highly critical of this in a story that focused on research affiliate's. he said target date mutual funds to produce bigger retirement mistakes than a 50-50 bought stocks mix would. so why pay for it? will well, this is a great point that has finally come out.

investors really are getting their shoreside of the stick by doing this formulaic rebalancing based on their age, retirement. it does not make any sense. you end up buying high and selling low. does it automatically. most financial advisers say asset allocation is the most important. this is what happens. instead of looking at your portfolio. a 50-50 mix of stocks and bonds, look. bonds have gone up so much. it's the 70 percent of their portfolio. cut that back and lift up equities. that would be a great way to end up making more money. the opposite happens. is this constant process of doing more and more into bonds. a bond bubble that is about to burst. bonds are overbought. when that bubble burst you are going to have those that are closest to retirement that are almost fully invested in bonds because that is how it works. gerri: mutual funds are making the situation even worse.

suggestions for people out there who might be worried about this. what should they be doing? rate on substitutes right now which are the high-yield -- the high dividend yielding stocks. you want to be across the board invested. use financials, a company like black rock. excellent dividend yield. you could look at companies like mcdonald's. you could even have the capitol appreciation in there. waste management. you could even at -- i love the idea of an international stock, the ticker symbol is s.i., and you can buy it, this german company, right here in new york stock exchange. gerri: that's right. all good ideas. and i never heard anybody put it quite that way. interesting to hear your analysis. at this afternoon with numbers showing mutual fund flows. again, even now we are seeing people get out of stock funds. what would you tell the?

>> this is not the time to be going into bonds. it seems that stocks are overbought. we have had a gate teeseven gray rise in s&p and nasdaq, but you are still better off historical. much, cheaper. think back to the 1980's. investors were burned so badly. interest rates rose and bond prices fell. it is possible to be heard in the bond market. this misconception out there that it is all about bonds if you want safety. it's not the case. gerri: becoming a very dangerous terrain out there for bondholders, underlying or funds themselves. thank you for coming on. in absolute pleasure to have you here. great advice. we'll be right back. [ male announcer ] at scottrade, we believe the more you know, the better you trade.

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gerri: campaign trail looks more like sesame street at the obama crowd upset over mitt romney's plan to cut funding to public broadcasting. when you think? you agree that no tax dollars rivenburg? we often gerriwillis.com. 90% said yes, 2% said no. pj writes that about the food police -- how about putting gym classes back in schools instead of changing food. no exercising and get fat. a one-size-fits-all diet is the stupid teenage boys are and always have been bottomless pits for good. that's right. balance is we have to get romney to bigger deficits.

they do not take them and they just received really must get the point across about how it affects him. we love hearing from you. send me an e-mail and gerri@foxbussiness.com. finally, helping the homeless. it has been a growing problem for decades. the big apple has more than 46,000 homeless people in the city, 14% of the nation's homeless population. for some context, l.a. is second with just 3%. as a result, michael bloomberg has opened 10 new homeless shelters in recent months. chelsea and greenpoint. all of you non-new yorkers out there, residents are fuming, saying that these areas are now unsafe and dirty. bloomberg says it's the nature. with unemployment so high, these people need to go somewhere, but i do find it curious within the neighborhood that i mentioned so far, could it be because that is where mr. bloomberg lives? that is my "two cents more". coming up tomorrow, as vice president joe bide